Australian taxpayers are being cautioned to ensure they declare all income sourced from Japan, with the cooperation and exchange of taxation information increasing between Japan and Australia.
The Australian Tax Commissioner met with the Japanese National Tax Commissioner this month to discuss the bilateral treaty use to undertake joint compliance projects and multilateral cooperation. Recent sharing of information between the National Tax Agency of Japan and the ATO identified certain cases when Australian residents had incorrectly declared income from the property sale in the ski resort areas of the Niseko district, Hokkaido.
The increasing cooperation between the two countries is making it is harder for individuals to avoid their tax obligations if they are selling and buying assets or making an income in Japan and other countries. The information sharing of real estate transactions from Japan is just one example of the continuing focus of Australia on information exchange under multilateral and bilateral treaties with other jurisdictions.
Other routinely exchanged information with jurisdictions include dividends, bank interest and other income types.
It’s expected that countries in the G20 will formalise automatic exchange of information soon and this will make the information flow even easier.
Contact Solve Accountants located on the Gold Coast, Qld Australia if you need help with your business tax.
